The policyholder of car insurance is the person who contracts it and, therefore, who signs the conditions of the policy. He is also the one who is obliged to pay the premium for the contracted coverage. It should not be confused with the insured as the regular driver of the vehicle, even though both figures often coincide with the same person.
The question then arises as to whether the policyholder of car insurance can be changed. In principle, the answer would be no, given the essential nature of this figure for the validity and seniority of the policy. However, the modification of the policyholder is possible in some very specific cases that we will show you below.
Cases in which it is possible to change the policyholder of a car insurance
The general rule is that the policyholder cannot be changed. That is why if you want to change the non-owner car insurance, you will have no choice but to cancel the renewal of the policy and go on to contract a new one.
There are, however, some exceptions to this general rule, that is, specific cases in which the policyholder will be allowed to change. These exceptions vary depending on whether the said policyholder was a natural or legal person. If the policyholder of car insurance is a natural person, the change of him will only be allowed if he dies.
If the policyholder is, on the other hand, a legal person, the change of policyholder is possible only in the following cases:
- If the activity of the company ceases and another entity absorbs it to replace it in said activity.
- If the person who appears as the insured or declared driver decides to acquire direct ownership of the policy, thus becoming the new policyholder.
Can the policyholder of a car be by a person other than its owner?
The usual thing is that the person who acquires a car, that is, its owner, is also the one who contracts the insurance-linked to it, that is, the policyholder. However, there is no legal provision that compulsorily imposes said coincidence between the owner and the policyholder.
The only legal requirement that the owner of a vehicle has is to have compulsory civil liability insurance, whose purpose is to cover the damages that may be caused to third parties as a result of an accident or mishap. But no legal norm requires that such insurance must be contracted by the owner himself. It may happen, therefore, that it is a third party who contracts the insurance and, consequently, becomes the policyholder, not coinciding in this case with the owner.
What are the obligations of the policyholder of car insurance?
The policyholder of car insurance is subject by law to the fulfillment of a series of obligations, which in general terms would be the following:
- Declare the risk to the entity with which you are going to contract the insurance. This statement must be truthful, stating all the circumstances known to it that may influence the risk assessment. If the insurer discovers that the policyholder was not truthful in this statement, it may terminate the policy or, in the event of an accident, not pay compensation. The policyholder is also obliged to declare, throughout the term of the contract, those facts or circumstances that could aggravate the risk.
- Pay the insurance premium under the conditions stipulated in the contract. This is the consideration received by the insurer for assuming the risk of coverage. Without this payment, the policy is not effective.
- Declare the claim when it occurs, providing the company with all possible information. This statement must be made within a maximum period of seven days from the time you become aware of the incident. However, the claim declaration can also be made by the insured driver or the beneficiary.
Rights of the policyholder of a car
The policyholder not only has obligations but also rights. To begin with, you have the right to request from the insurer as much information as you deem necessary before signing the contract, especially the scope of the contracted coverage and the procedures for requesting the services offered by the company.
Once the policy is signed, the policyholder is also protected by a series of rights that, among other powers, allow him to:
- Expand or reduce the contracted coverage, while always respecting those corresponding to legally required mandatory civil liability.
- Change the beneficiary or beneficiaries of the insurance.
- Decide whether to renew or terminate the contract.
